EMOT vs SCHD
First Trust S&P 500 Economic Moat ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | EMOT | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.06% | |
| AUM | $3M | $103.7B | |
| Dividend Yield | 1.08% | 3.31% | |
| Holdings | 51 | 104 | |
| YTD Return | +15.94% | +25.33% | |
| 1Y Return | +20.04% | +32.31% | |
| 3Y Return (annualized) | - | +15.40% | |
| 5Y Return (annualized) | - | +9.70% | |
| Volatility (annualized) | 11.3% | 13.6% | |
| Max Drawdown | -16.4% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jun 26, 2024 | Oct 20, 2011 |
EMOT vs SCHD Performance
First Trust S&P 500 Economic Moat ETF (EMOT) is a ETF from First Trust Portfolios (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year EMOT returned +20.04% while SCHD returned +32.31%. Year to date, EMOT is up 15.94% versus a gain of 25.33% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 11.3% for EMOT. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -16.4% for EMOT and -33.4% for SCHD. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EMOT charges 0.60% per year while SCHD charges 0.06%. On a $10,000 position that is $60 vs $6 annually, a gap of $54 per year that compounds over a long holding period. On income, EMOT currently yields 1.08% against 3.31% for SCHD.
Holdings Overlap
EMOT and SCHD share 10 holdings out of 140 unique holdings combined, representing a 17.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, EMOT or SCHD?
EMOT has an expense ratio of 0.60% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $54 per year of difference.
Which performed better, EMOT or SCHD?
Over the past year EMOT returned +20.04% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), EMOT annualized +17.03% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, EMOT or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 11.3% for EMOT. Worst drawdown: EMOT -16.4% vs SCHD -33.4%.
Should I hold both EMOT and SCHD?
EMOT and SCHD have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EMOT and SCHD?
EMOT and SCHD share 10 common holdings with a 17.7% weight overlap. Combined, they hold 140 unique securities.
Which pays a higher dividend, EMOT or SCHD?
EMOT yields 1.08% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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